A Beginner's Guide to the Stock Market
The stock market is one of the most popular ways to invest money in the United States. It involves buying and selling stocks, which are shares of a company that give you partial ownership in its business. The goal of investing in stocks is to grow your wealth over time by earning dividends or capital gains (increases in value). Understanding the basics of the stock market: stocks, bonds, and other securities Stock: This is a share of ownership in a company. Bond: An investment that pays interest, usually for a specified period of time (usually between three months and five years). Bonds can be either government or corporate securities, but they are also known as fixed income instruments because they pay interest on their principal amount. Mutual fund: An investment pool managed by an investment manager who selects investments based on specific criteria such as market capitalization, risk profile and return potential based on past performance data collected from other funds manage...